Experience of Wallonia in Mixing top-down and bottom-up approaches in clustering policies Presentation at the 12-13 november 2015 Workshop on the operational development of Flemish cluster policy

1. DIRECTION DE LA POLITIQUE ECONOMIQUE
Mixing top-down and bottom-approaches
in clustering policies
Workshop on the operational development
of Flemish cluster policy
Brussels, 12-13 November 2015
Florence HENNART

2. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Background elements
• Mixing top-down and bottom-up approaches : 3
angles
– Selecting strategic priorities and involving
stakeholders : the Competitiveness Poles policy
– Combining « top-down » and « bottom-up » clusters
– Finding the appropriate policy mix : meeting the
needs of clusters
• Lessons learned

3. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Background elements

4. DIRECTION DE LA POLITIQUE ECONOMIQUE
The development of clustering policies in Wallonia
2001
• 2001 : launch of the business cluster policy, bottom-up
2006
• 2006-2009 : 1st Marshall Plan (1,6 billion €)
• Launch of the Competitiveness Poles policy, 280 millions € (5 poles
created). Mix of top-down and bottom-up approaches
2009
• 2009-2014 : Marshall Plan 2.Green (2,75 billion €)
• Pursuing and deepening the competitiveness Poles policy, 388
millions € – Creation of a 6th Pole (Green chemistry)
2015
• 2015-2019 : Marshall Plan 4.0
•  Axis II: Deepening of regional smart specialisation strategy
through Competitiveness Poles (316 millions €) – new policy
impulses

5. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Mixing top-down and bottom-up approaches : 3
angles
– Selecting strategic priorities and involving
stakeholders : the Competitiveness Poles policy
– Combining « top-down » and « bottom-up » clusters
– Finding the appropriate policy mix : meeting the
needs of clusters

6. DIRECTION DE LA POLITIQUE ECONOMIQUE
Creation process of the Competitiveness poles :
a mix of top-down and bottom-up approaches
•University study
•Regional potential
and perspectives
•Criterias
•5 domains identified
Selection of
priority domains
• Creation of 1 Pole/domain
• Terms of reference
• Stakeholders defining the
Partnership, strategy,
concrete projects, mix of
technologies and sectors
Call for interest
• Analysis by an
independant jury
•Labellisation of the
poles and first
projects by the
Government
Creation of the
Poles
Same process for the 6th Pole
(Green chemistry and materials)
• Aerospace
• Transport and logistics
• Life science and health
• Agro-food
• Mechanical engineering

7. DIRECTION DE LA POLITIQUE ECONOMIQUE
Selection criteria: quantitative and qualitative data
• Private employment
• Number of enterprises
• Export propensity
• Multipliers effects
Economic basis and its
evolution
• Patents
• R&D investment and enterprises
Technological basis and its
evolution
• Participation to EU programs
• Scientific publications
• Citations
Scientific basis and its
evolution
• Existing potential and past policy efforts : support to
investment, structural funds, public research centers,
training centers, business clusters, export clusters, spin-
offs,…
Redeployment process
• Spatial distribution of employment and entreprises
• Technological intensity
• Growth potential
• Global leaders and endogenous potential
Strategic perspectives

8. DIRECTION DE LA POLITIQUE ECONOMIQUE
Implementation : Annual call for projects
• Analysis by :
• the Pole
• the
administration
• Internal jury
Letter of
Intent
• Formal
administration
opinion
• External jury
recommendation
Finalized
project • Decision of
support /
budgets
• Conditional
decisions
Regional
Governement

9. DIRECTION DE LA POLITIQUE ECONOMIQUE
Governance of the Poles
Governing board : Strategic orientation
President = industrial, vice-President :
academic
SMEs representation
Regional representatives
Operating cell
Internal
jury
Regional
Government:
Policy choices
External jury : scrutiny on
the projects / results
Coordination administration +
functional administrations
Inter-Poles committee

10. DIRECTION DE LA POLITIQUE ECONOMIQUE
http://clusters.wallo
nie.be/
Competitiveness Poles Clusters
Industrial processes
and new materials
MECATECH
Mechanical engineering, materials and surfaces of the future, shaping of
materials, additive manufacturing, microtechnology and mechatronics,
intelligent maintenance and manufacturing
PLASTIWIN
Plasturgy : polymers, engineering plastics,
elastomers and rubbers, foamed products,
composites, technical textiles
GREENWIN
Green chemistry, environmental technologies, treatment and reuse of
waste and effluents, waste water management, bio-sourced chemistry,
management and storage of energy, sustainable building and renovation
LOGISTICS IN WALLONIA
Transport, Logistics and Mobility: multimodality, sustainable logistics,
supply chain security, internal logistics and management of industrial
processes
SKYWIN
Composites and metal materials, industrial processes, embedded systems,
airport services, space applications and systems, modeling and simulations
Health and nutrition
BIOWIN
Biomarkers, Diagnostics in vitro and in vivo, innovative tools and
equipment, medication administration systems, innovative therapies (cell
therapy, protontherapy), IT applied to human health, medical equipment,
drug discovery, innovative processes and organizational innovations
WAGRALIM
Health and nutritional quality of food, industrial efficiency, packaging and
sustainable agro-food industry

11. DIRECTION DE LA POLITIQUE ECONOMIQUE
http://clusters.wallonie.be/ Pôles de Compétitivité Clusters
Sustainable development -
Sustainable building and
energy
GREENWIN
Green chemistry, environmental technologies, treatment and reuse
of waste and effluents, waste water management, bio-sourced
chemistry, management and storage of energy, sustainable building
and renovation
TWEED
Development of sustainable energy sectors: renewable
energy sources, development of new processes and products
for energy saving and energy efficiency
ECO-CONSTRUCTION
Green building and green renovation
CAP 2020
Green building , low energy consumption building, energy-
efficient building
Transport and mobility
LOGISTICS IN WALLONIA
Transport, Logistics and Mobility: multimodality, sustainable logistics,
supply chain security, internal logistics and management of industrial
processes
SKYWIN
Composites and metal materials, industrial processes, embedded
systems, airport services, space applications and systems, modeling
and simulations
Digital Technologies
Big Data innovation Platform INFOPOLE CLUSTER TIC
Smart mobility, e-health, green technologies, Internet of
things, serious games, big data, open data, transmedia
TWIST
3D stereoscopic imaging, serious games, digital media,
Internet and mobile content, scanning and digital archiving,
motion recognition

12. DIRECTION DE LA POLITIQUE ECONOMIQUE
Selecting priorities and involving stakeholders –
key points:
 Top-down = policy framework
 Focus on processes, giving the right incentives 
involvement and ownership
 Industry in the driver seat for defining strategy
and selecting priorities
 External jury as facilitator for Government's
choices
 Avoiding a pure sector approach value chains,
cross-sector

13. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Mixing top-down and bottom-up approaches : 3
angles
– Selecting strategic priorities and involving
stakeholders : the Competitiveness Poles policy
– Combining « top-down » and « bottom-up »
clusters
– Finding the appropriate policy mix : meeting the
needs of clusters

14. DIRECTION DE LA POLITIQUE ECONOMIQUE
Business Clusters Competitiveness Poles
Bottom-up, large sectoral scope Top-down (6 strategic
sectors)+bottom up
SME’s Oriented Triple helix approach : Large
companies, technological SME’s,
universities and research centers,
training centers + governement
Financing : animation structures
3 * 3 years (100%-80%-50%)
Max 160.000 €/year
Policy mix : support to projects
+ animation : Up to 350.000-
400.000 € / Pole / Year (Wages)
IF Private counterpart of 50%
(expenses / valorisations)
+/- 900 members +/- 1.000 members (750
companies)
Networking, cooperation and innovation
throughout the whole economy in
Wallonia. Technological, industrial or
commercial collaborations
Reaching global competitiveness in
key domains by developing niche
markets (critical mass)
VL : Innovative Company Networks VL : Spearhead clusters

15. DIRECTION DE LA POLITIQUE ECONOMIQUE
15
Number of Clusters in Wallonia
4
6
8
10
12
14
16
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Business Clusters Competitiveness Poles
Aeronautics
Space/Nutrition
Automotive
MiTech
T&L

16. DIRECTION DE LA POLITIQUE ECONOMIQUE
Combining Poles and Clusters – key points:
Phase 1 : 2 policy tools – tailored animation
support for the Poles
 Phase 2 : progressive integration of clusters –
developing priority axis within the Poles
 Criterias for the selection of clusters
 2 competing policies ? Specific objectives
 Benefits for entreprises vs fees
 Bottom-up clusters as tools for mobilizing SMEs
 Finding the right balance…depending on the
regional context / potential

17. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Mixing top-down and bottom-up approaches : 3
angles
– Selecting strategic priorities and involving
stakeholders : the Competitiveness Poles policy
– Combining « top-down » and « bottom-up » clusters
– Finding the appropriate policy mix : meeting the
needs of clusters

18. DIRECTION DE LA POLITIQUE ECONOMIQUE
Implementation : Policy mix
• Collaborative R&D projects (2 enterprises and 2
research centres)RDI
• Investment subsidies
• Common infrastructures (R&D, infrastructures)Investment
• Sector expert to support export approaches
• Promotion actions and international prospection
• Attraction of FDI
Internationalisation
• Development of specific trainings according to the
needsTraining

19. DIRECTION DE LA POLITIQUE ECONOMIQUE
Implementation : Development of the Policy mix
• Collaborative R&D projects (2 enterprises and 2
research centres)
• Innovation platforms
RDI
• Investment subsidies
• Common infrastructures (R&D, infrastructures)Investment
• Sector expert to support export approaches
• Promotion actions and international prospection
• Attraction of FDI
Internationalisation
• Development of specific trainings
• Internships , Dual trainingTraining
• Up to 350.000-400.000 € / Pole / Year
(Wages)
• IF Private counterpart of 50% (expenses /
valorisations)
• Project support, networking,…
Animation
structures

20. DIRECTION DE LA POLITIQUE ECONOMIQUE
New impulses towards an integrated and coherent policy mix
• Innovation platforms
• Creativity, business innovation, ICT, user-
led innovation
RDI
• Industrial valorisation : prototyping,
financial instrumentsInvestment
• EU projects and networks
• Internationalisation strategy
Internationalisation
• Training policyTraining
• Linkages with broader animation policy
• SME’s involvement, entrepreneurship
• Circular economy
Animation structures
Cross-cluster collaboration – Building new industrial value chains
Smart specialisation strategy

21. DIRECTION DE LA POLITIQUE ECONOMIQUE
21
Building an efficient Policy Mix

22. DIRECTION DE LA POLITIQUE ECONOMIQUE
Finding the right policy mix – key points:
 Building progressively the appropriate policy
mix
 Evolving needs and ambitions (maturity curve)
 Too strong focus on cluster dedicated tools,
with focus on R&D projects
 Balance between specific tools (incentives) and
horizontal ones (synergies)
 Too strong focus on regional tools 
Articulation with EU programs
 Keeping key policy objectives in mind !

23. DIRECTION DE LA POLITIQUE ECONOMIQUE
Agenda
• Lessons learned

24. DIRECTION DE LA POLITIQUE ECONOMIQUE
Lessons learned
Political leadership
needed : key
objectives, policy
processes, making
choices
It’s a long time
process, learning
curve – time to
results !
1st result =
networking
Need of flexibility 
piloting, learning by
doing, monitoring
and evaluation,
dialogue
Balance the stakeholders
requests
External expertise
Avoid locked-in effects
Innovation dynamics
within the clusters
Private participation

25. DIRECTION DE LA POLITIQUE ECONOMIQUE
Thanks for your attention !
http://economie.wallonie.be
http://clusters.wallonie.be/federateur-en/
florence.hennart@spw.wallonie.be